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16 Business Models Based on Advertising
Pages 104-109

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From page 104...
... Every major Internet portal has seen a serious decline in revenue coming from advertising, and offline businesses dependent on advertising revenues have seen similar thinning. When banner ads first came out on the Internet, people clicked on them 15 to 20 percent of the time, because nobody knew what they were and everyone was trying to bounce around and figure out this exciting new medium.
From page 105...
... If there is no transaction at the end of the day, then revenue does not flow back to the advertising presenter, who is thus not happy about the way the ad space has been used. 16.2 PORTALS, ADVERTISING NETWORKS, AND TARGETING In discussing advertising-based business models, it's important to note that the big players America Online, Excite@Home, Yahoo sell many of their own ads but not all of them, which is important.
From page 106...
... 16.3 CHOICE OF MODELS Different types of Internet content providers favor different ad models. The quintessential example of the lengths to which some companies will go to drive traffic is that, if you end up accidentally on a porn site, you cannot even close your browser the site just keeps showing up.
From page 107...
... requires parental permission for any personally identifiable information collected iBrian Pass said that, when his company delivered large, rich-media ads such as the movie trailer mentioned in his presentation bandwidth costs were an issue, because the entire file was shipped all the way to the user's computer on a nightly basis. If rich-media technology starts to take hold in advertising structures, then bandwidth costs will be a factor.
From page 108...
... It is always difficult to figure out what will happen in the EU and which body is acting on which day. Senators John McCain and John Kerry have proposed privacy legislation that would require Web site notice, which would affect potential children's advertisers along with everyone else, in terms of fully disclosing the facts and the privacy laws.
From page 109...
... It is okay for most people that Webvan knows that fact because you want it to bring the toothpaste so that you do not have to leave home or worry about it. You want your refrigerator company to know when your compressor isn't operating properly so that it can come out and service it.


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